Constitutional Whig. [volume], December 26, 1827, Image 1

About Constitutional Whig. [volume] (Richmond, Va.) 1824-1832

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—- ' DEMOCRACY-—THE CONSTITUTION-—STATE nn:nt« ^ ^ '
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- PiyEASAN— -SMrTH_fl RICHMOND, VIRGINIA. WEDNESDAY. DEfnwwirt™ =SSB^s^sfrBa!l
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HOUSE OF HE PRES RNTA TIUES.
Thursday, Dec £0. 1527.
BANK OF TIIE'UNITED STATES.
P’ P* BARBOUR, of Virginia moved i'ne cod
siHehition ot the following resolution, offered by him
8ome»hi'ys since, and now lying on the tabic:
"fitisolved, that the committee of ways and means ba
instructed to inquire into the expediency of providing
by law for the sale of that portion of the Stock of the
Bank of the United States which is held by the Govern
ment of the United States, and tho application of tbo !
proceeds thereof to the payment of tho public debt.” j
The motion prevailed, and the resolution having beeo ■
read at the Clerk’s (able,
Mr. BARBOUR rose, and laid that, at the tunc he
had had the honor of presenting this resolution to the I
house, he had accompanied it by some general remarks, j
intended only to convey an outline of those views in I
which tho resolution was founded. I laving since un
derstood that it was denied, by many gentlemen, that !
the policy of the measure it recommended should be ;
■discussed without delay, and presuming that tho opinion
which the House might express at this stage ot its con- I
sideiation. was to be receive;] as decisive of its future '•
destiny, it was his purpose now to go somewhat more at !
large into the reasons which had induced hi n to oiler ;
this proposition for consideration. But. before he pie* !
sented these wjvys, he would take leave to make one or i
two passing remarks, which he owed in justice to him I
self. He had heard it pretty clearly intimated, since •
tho presentation of this resolution—nay, he had seen it '
go intimated, that this might possibly bo what was de- I
nominated a measure of the Opposition in this [louse, i
Some amJtiguaz voces had reached his ear, which seem- !
cd to imply that, in bringing forward this proposition,!
ho had been influenced bv some motive, and liad che i
risbed some purpose, other than those which had been
Avowed; and that the measure ho advocated, was itself^
me resun m cuiicari, anu 01 nn understanding among
those who were denominated the Opposition members !
It was br.t an act of sheer justice to himself to declare, i
that while, on every proper occasion, in relation to mea ’
Bures which might be viewed as affecting what were
called party politics, he should openly, frankly, and
Teat less!}’express the opinions which he really enter
tained, and should do what he thought to be right, ho
Should as openly, as frankly, and os fearlessly, pursue
his convictions, whether they did ot did not coincide
with those of others. It never had been a part of Ins
Character or his course, anJ it never should be, toap ,
proacb any object he had in view by indirection: his j
motive he would openly avow; the opinions he held he ‘
would frankly express; what he did he would ever do in |
open day; ha trusted he never should learn as lie had *
not hitherto fcarnnd, the by paths of either moral or po- |
litical obliquity. He disdained to be influenced by con j
^derations which he was ashamed to avow. He de3pi ;
esJ the idea of getting at the object he might have in \
view, iit any way but by meeting it in the face, and sta- i
tinghis opinion or ins purpose just as it really was. Un^J
tier the influence of such fuel mgs, he now utterly and |
positively disclaimed any 3uch motive, purpose, concert,
or understanding, as that which had been attributed to ]
him. So far was he from this, that, as far as he had re- !
coivad any intimation of the opinions of those gentlemen,
with whose general political principles he agreed, as to j
the proposition he was about to offer, he knew that some i
of them were .opposed to it. It was no moro than jus
tice to himself, to say that the measure proposed by the
resolution, be it right or wrong- whether salutary or
pernicious in its tendency, was the offspring of his own
mind. He bad not mentioned it to more, in all, than .
half a dozen of his friends, and cut ol this number two
disapproved of it.
We shall have fallen on ovil times, indeed, said Mr.
II. if a member of this House might not, in the in'egri
t v of his heart, rise in his place, and offer forconsidera
lion a measure which he believed to be for the public
weal, without having all that lie said and did imputed to
seme hidden motive, and referred to some secret pur |
pose which was never presented to the public eye- He i
again solemply disclaimed all such motives and every
such purpose- To what lie had already said he would
go so far as to add, that, even in the last annual report
received from tha Secretary of the Treasury, there was
an allusion to the very subject which he had brought
forward. As a proof of this, he begged leave to read a i
short extract from that ret ort.
“The sum of seven millions, subscribed by the Go
vernment to the Bank of the United Stair s, is, in effect,1
destroyed as debt, by tim United Slates owning nn
equal amount in the shares of the Bank. So far is '
this sum from being any charge upon the Treasury,
that the Treasury is annually receiving inlerest for it
in the dividends upon the shares. Whenever the latter]
axe sold, they mrty nl least be expected to replicc (he !
si mi that teas invested in them
Hern was certainly a pretty distinct tcierencc of the ,
honorable Secretary to the same subject as was embra ;
ced by his resolution; and yet, he presumed, it trot:Id j
hardly be inferred that motives such as he had found it
necessay to disavow, had influenced the author of that
report. With the«e prefatory remarks, which he con
ccivcd were demanded by a just regard to his own char
acter, Mr. B. said ho would now pass to the immediate)
question to he considered ,
My proposition, said Mr B. is to sell out (he stock at
present held by the Government in the Bank of the >
TTniteii States, amounting to the 9um of seven millions
of dollars. When I first introduced this subject, I
stated to the House that the existing price of this;
stock in the maiket, was understood to stand at nr.
advance of twenty three and a fraction per cent, on
tbe nominal amount. It is plain, that if the Govern- i
inent could Bell out its whole amount of stock at that j
price, it would realize a profit to the whole extent of
this advance of 23 per cent on seven millions of did* !
larn, amounting to about £ 1,600,000. No proof will
he required that this would be a very advantageous
transaction, provided it were attended with no mjuri i
ous consequences sufficient to countervail the amount I
of the profit. To add such an amount to the available j
funds of the Government, without laying any addi- !
tional burdens on the people, fiscally considered, must
be a beneficial operation. Would such an operation,
Mr B. asked, he attended with those injurious conse 1
qaences which have been anticipated, and which h ive
been urged as objections to it by gentlemen on this
floor? It would now bo his endeavor to show that it
would not. Wo have been told, that the very instant
such a measure was resolved upon in this flail, a very
large deduction would take place in the present ad
vaoce in the market price of trie stock, and (hat the
greater part, if not the whole of the twenty three and j
a half per cent would suddenly disappear on the mere
mention of such a thing as being seriously intended. |
We have farthor been assured, that the suddenly >
throwing of £7,000,000 worth of this Btock into the!
money market at once, would present an amount that j
could not be puichased by the capitalists here, and ;
that, consequently, an alarming depression of tbe price
wo ild infallibly ensue.
In reply, ! might remaik, in the Gist place, that
the mero matter of detail, as to tbe time, the manner,
and the different sums, in which this slock is to be
introduced into tbe market, would be subject to ar>
rangement in die bill reported in pursuance of this
resolution; and that, by a judicious arrangement of
them, much, if not all, of this consequence might rea
dily be obviated. The whole amount need cot be
thrown into market r.n tiio<tsc, but successively present
< * ;:t Broker) °’;SiS With lr* ?rc?ent vic-v of the
-- --—- «44^ numu
uot say that there was no possibility of the smallest
depression taking place, but he certainly was confident
that, if tiiere should he any tall in the price, it would
at the utmost, ho very small. Bank Stock is acorn
modify in market: and there is one principle of politi
cal economy so well established as to he universally
icneived as an axiom in that sciccoo, (hat the price
of every commodity, (uot excepting even gold and!
bullion) is regulated in all cases by the proportion be-1
tween the supply of, and the demand for if. Theie ■'
may occur occasional fluctuations and irregularities in I
this general state of thiugs, but these, like (he alter !
natmg vibrations of (he pendulom, at.I! (end to quiesce !
in the centre. Now lake this universal and well settled !
principle, and apply .t to the existing situation of t! is j
couDtr\ — to the stock in question——to its character, to I
the quantity proposed to be sold, and to the demand or i
it.
If will not he denied by me, said Air B. that i *iate I
of circumstances might be conceived to exist, m wi ich
an attempt to sell this amount of United Stales’Bank 1
Stock, would be productive of very considerable de- |
pression of its market price. But the question now to '
be considered by the House is not what might hapoen
umloi a given posture of conceivable circumstances, {
but what is likely to happen in (lie actually existing !
state of thing3. The only ground of such depre^iou |
if any, must bo the large increase of supply, while tl.o '
same demand, and no more, continues to exist. Such '
a stale of things would imf.inge upon the gen«ial j
principle I first stated, by altenog the proportion bo !
tween demand and supply. But no such stale cl !
things will exist, should the present -proposition pro !
vail: tor there is, & has been for these three \earo past, i
a diminished quantity of Government stock to be sold! i
and an increased amount of means to buy it, both oc! j
casioned by one and the same cause, name!)—the pay
ingo.T of lai^e poitians of tbs public debt by the re- i
deinption of United State*’Stock.
inuring me year wo paid or the prtocipal o* j
tlte public debt more (ban seven and a hail millions; j
in 1326, more than seven millions; and, during the ,
present year, 1327, vve shall have paid more than six !
uni* a halt millions mum; ioa*cing in all an am 'uni of i
twenty one and about a quarter millions. The Sec I
rotary ol tlie^ Treasury, however, iuforujs ns in his ;
Report, that five millions of this debt ius been paid!
bv tbs issue of a new stock. It will, therefore! Lei
proper to deduct this; and tbs result will be, that, m }
ibc£e three vears, there have been actually paid <>!T
more than sixteen millions of the public debt. To
tins let mu add that, according to tho statements rela
tivu to the Sinking Fund, and tbe present condition
of the 1' unded Dobl, their* will be paid, in ?ha year
1823. seven millions more; and in the yeais 1829 nod
llloO, an amount even Ley< e.l this, (being enlarged by
tbe increased activity of the Sinking Fund, from the
circumstance of a largo ninonnt now devoted to in
tcrest becoming applicable to the principal of the debt.)
Reckoning, then, that, during the venrs 1325, C and 7, j
sixteen millions have Seen paid, and that in 1827, b\
and 9. twenty one millions more will have been paid:
bore will have been an amount of thirty seven mi!lions
of public debt of tbe United Slates paid olF in sit i/Cfii i
Have any violent shook** been produced by this o j
peration? Has any derangement resulted in tbe Liu- j
anci.il arrangements of tin* country? Has U. Stales’'
stock Lilian? I apprehend not. And wbv? For the
reason ! have stated, and which I now apply to the
proposition before ns, and from which very extensive ;
consequences ncccEsaiily follow, going to show that
the oiled ot the payment of very large aftiouute of the
public debt is not to diminish, but to ir.cren-e. lb;*
price of tbe re=idup. \\ ben, in the Biitish Oovcrn- •
ment, their smlcing fund was established, in tho year
1736. it was held necessary to fix a n-.axi.-r.xm fur it.-i
operation, lest too great an amount of money should
thereby be thrown into the market. It *.vil! Lo rpv :
endeavor to show that, with us as with them, the effect j
of paying off the debt produces an abundance of mo- ;
ney, and therein an abundance of the means of pur
chasing the hank slock winch the same operation has
thrown into tb** market. Wbde the former ow. ars uf.i
the public stock base in their hands motiy which seeks !
investment, the sale of (he bank stock will furnish an ;
admirable mode b\ which this may be accomplished, i
Applying tho pr>r.ci;de with which he Let out, Mr R.
remarked, that it would he apparent that, if anv da j
press ion was to result, it would rather bo produced by j
pat irig tlte doht in money than bv exchanging it for j
hank stock. By redeeming tho rational stock, inoriov ■
which was before safely invested, is thrown into the
market, and naturally seek- some employment. Tsuv,
1 propose, said Mr B. while this is done, to can v into
tbe market an r^ual amount of stork in which that*
money may be invested again. Do gentlemen appro I
ben<i a depression in the price of stock? Why?
cause, say they, there will bo too largo an amour; of
it for the money which is prepared to be invested in i'. ■
But mv prr-posi'ion. lo its whole ex'ent, goes to pav j
oil’so mocb of the public debt, and therein to fun -h j
tbe means of purchasing—in addition to which, seven
.■!!:__. . _ iit . «
uc univmi nt'Ki vr:ir irom me cpcr*
at ion of the sinking fund- The conclusion, from n
.viow of (be ?c Mots, would seem to u,o to be, that it is
next to impossible that a depression can bo produced
in the prior of bank stock; by an c,.oration which, vvl i:o
it exposes (hat stoct; to sale, supplies, at the same time,
the means arid the inducement lor purchasin'1- it.
I do not mean to advocate the old. and what I
understand to be now an exploded doctrine, that the
payment of the public debt is an addition to the actual
funds of the nation. The effect of that payment is on
ly to lei loose si much capital firm a permanent invest
men!: it creates no now capitol, hut it adds to the a'
mount of carital seeking investment, new, then,
there will be a combination of the verv two ciictnn
stances which opeir.le to increase the price of a commo
dity, viz: increased demand and diminished supply_
the ons created by paying off so much or* (ho public
debt, the other by diminishing 90 much of the public
funded stock.
Mr. H. here presented tho result of some calculations
which he had made, with a view to shew how far facts
went to justify the principles be had laid down. Rut, be
fore he exhibited them, he wished to premise that they
had been made from (ho best information ho could ob
tain: that they did not aim at mathematical exactness—
fractions, and even small sums n >t fractional, having
been discarded. (For example, ho had taken no no
tice of the difference resulting from tbo receipts of rf;
vidend* from the Bank, being half yearly, while the
payments of interest o:j the public stocks wore quar
terly.) His object was to approximate the truth io its
great outline, without attending toils minutest pruts,
lie would first endeavour to show what was the pre
sent average rate of profit on capital in the United
Stales. The 3 per cent. United State?7 stocks arc at
this time selling at 8® percent, offheir nominal amount.
Taking them nt 87 percent, the actual annual pro
fit realized by the purchaser, waa about 8 j per cent.
Rut as this description of Stocks were redeemable at
par at the pleasure of the 'Tovernmonf, be bad not in
eluded them :n (be statement he was about to submit
Of the 4{ per cent, redeemable in 1820.89.31,52,33,
ami 34, there were, he understood, but one bind now
in rmrkeq which kind it was lie could not say, but he
presumed (bat soonest redeemable. The 5 per cents
ranged from < to ft percen*. advance—he would take
the medium at 1 j, but as this included the dividend of lb.
present year, that amount must b<- deducted, which
(would leave them at 6-j lie that purchased this Stock
pat that rate, would receive an annual income of about
! ^3 133 c?r» • on crew <£*03. The " *«r cor/ *;io<*ks
t h *
<>i wore at from Cy to 9) advance—tie would take
j the average, 9 pet cent—lie who laid out ^10? 7j cents
i in ti-is Slock, would receive an annual interest of
I l,er cent; On the stock until its redemption, Mr. li
I »aid, ho introduced these quotations of prices to sI.enT
that other Stocks thau Hank Stock now yielded cri uv
er^ge profit of from 3.1 to 3] per cent. only. Jf {lie
I lou^e was surprised at this low rale of profit, i** would
proceed to shew why the invest notit of manor in those
hioeiis could ho afforded by the capitalist. ' He had
aeet. told, from the highest authorities, and among oth
ers from that of the first Secretary of the Treasury,
V*”r. Hamilton) iu his celebrated report on tho funded
debt, that aoy slock which ivas well and securely fun
ded, which enjoyed llic public confidence, and which
was tiansfe.rrahle, became, in a great measure, a part
o: the circulating medium of thp country.
In CoglanJ. stock of .hisdescription, us was weli known
entered largely into the circulating medium of the
Kingdom; and in this country, the credit of ou.- public |
s.ock being high, it:,, m general, transferable as u !
cucui.Uing medium, and Iuhus u» this security, r.an at
all times be easily effected. Now. if a cacitahst does
not invest Ins money in a permanent stock of some
•find, so long as it remains idle |,e loses f;10 interest cu
It entirely; but if he invests it in stock, even at a low
interest, yet he is receiving something fur it, though the
t rout may be but modeiat.-; and whenever he wishes to
make use of it fur business or speculation, 'he has a !
Coutroui over it almost as efficient and certain as if it i
were on deposit e in one of the banks. Hence arises !
sue.i a state of tilings that lb., capitalists of thu United !
otu.C3 as, the fact proves, find is to their interest to in—
ted 1 heir money in the public funds, at a teas rate of!
■merest, thau that money might command by other in !
vestments.
.! he was accurate in the result to which lie bad ar
rived by Ins funner calculation, Mr. B. said, tbea be
wru prepared to bbow, by another statement, (winch he
uttered with the same explanation, as to its degree of
jorierlness, which be had made in relation to the f.»r
ijior) that be who now pays the market price for stock of
the United States Bank, would receuo jib-mt U; nor
cont. i. r bis money, during tbe period of iiu,o wbicii
irouid ebipac before ibo expirafico or its charter.
I'totv, Mr. B. s.iij, when gentlemen anticipated so
great and suddon a depreciation iu Dank Stock tYoni
ottering a large amount vf it for sale, they might silo-,
iheir apprehensions by looking at tho profits of other
s.ock i.» t.ie market. Stockholders r.b was universally
lurm tcd, well uudurstood v.-bat was for their ©wo iu
to.cM and ifc.ii able to calculate with accuracy wl.nl
lymi: j on <ue value ol any contemplated investment ot
their capital. But, if it was a hot that iu other kinds
o, stock they received a profit of from three and a quar
ter to three and a half per cent, (as was before shewn)
u now appears that the> would receive nearly the same
profit upon the purchase of {Jotted .States’ Bank Stccir
at its present advance.
The existing cdiarter of the U. .States'* Bank extends
to tho year iUJG. The stockholders know tlds, and
have, therefore, precise data from which to calculate
the continuance of their investment in the stock, r.ud
allowing tin* present rate of dividend to he kept i n, they
may very accurately estimate the value of their invest'
me Us foiv, ol the various kinds of United Stages’ !
tdncu, tbcie o: net rn.o which is not redeemable before ;
• :c yem i -k;.; some kinds are to he redeemed In 11,-29 '
• me. m 1C Jo, and the following years, the maximum !
nait-r lh.33. The Bank stock is therefore more per- '
.1 by :i whole year (ami a t: action longer) than
~u.\ •«’•' vthcr stock, in tho market: and. 1 coed not,
S in! Mr. B. remind gentlemen that holders ot stock
whether they intend meiely to live on the animal pro* !
ceeds, or loose it fo» purposes <;f business «w specula .
lion, attach the greatest velue to that stock which u
tfiedc^L.ahir lor .he JoLgC-i time, ;.lJ the ;C.it creu*
poriionahly.
The longest date of the stocks created to pay the!
debt ei the last war was twelve year*, j
L»ijie ti.e SPEAKERinferfaied, nad reminded tho t
0entlc:i...n that M.e hour allotted to the consideration
cl resolutions had elapsed, and that he must postpone j
tho res;doe of his speech; whereupon, Mr. Me DUE-!
f’J Emored that the rule on that subject he for this day ',
suspended. 1 j
After some few ri jnarksfrom Mr. I>U KG ESS. f w liicb i
were declared n»>l to he in order on ihj-. motion) the
question was taken, and ti.e rule was suspended accor !
dinglv. ' t
t Mr. BARBOUR then resumed, nr.d recapitulated i
:he points of his argument, Jinviog, rs »,c hoped, sat is- j
Mctoi.Iy shown that no depression of the pi ice of Bar i;
stock was to he feared, been rise the pn; menls of tie
public cTebt already made, and shotUv -o be made,
would furnish a fund that naturally sought inve-.lir.ctri!
witile, at the satue time, the amount of United States’|
slock was thereby diminished; and because Bank
stock, even in its present advance, gave as good i. pro
i fit 5.*; any other stock. °
He ).nd thus far consioered (he slock of this Hunk as
! sloe,* merely, and had gone on the presumption that
the charter of the Bank was certainly tr> expire at the
limit of its present term, in U)J6. Lint !i i< was hy no
means certain: on the contrary. there was cvoiv pro
bability that the charter would he renewed. Tho jug
liabilities of liic event could as well be judged of by
the stockholders as by him, and probnb!yJ|jnfch br»ti r.
Their calculations of that probability bad uuiled with
other considerations to produce a m'aikot price much
advanced beyond the nominal value of (he stock, and
(his he Imu cedesro.'id to show was not Jfjtely to be
dimir.Hhed. '
lie now proceeded (e enquire if any other evils wore
j !o bo apprehended from (lie proposed sale/ It had
j been said, tint the moment such a proposal should pass
i'bn House, all public confidence indie character of
this stock would be at an end; and as its price depends
j on the corn pound considerations ofits security. Its profit
j nblcnrss, and i's hold on the public coofidr ndc. if Ibis
i last should b« destroyed or greatly shaken, a sudden
j fall in fhe price of the stock mu :t inevitably follow.
! Bub he asked, why must the public confidence be
i diminished? T)*e charier of (be Bank weald still re
j main: (for be presumed no member of this Heme
I thought of laying so much a« a finger cn that inslru
j ment.'; All the funds of (he Bank would continue; its
! debts receivable would continue; the profits of its op.
| orations would remain mttouebed; its discounts would
go on; if would have the same flireftlirn; it would c,on
! tinue to be the depository of the funds of the United
! Slates, (which constituted of flicrnselve- an enormous
j arnonn;.) In short, not one of its circnn.stances would
j sustain any change which could impair the confidence
! of *be stockholders. Why, then, must it he impaired?
Suppose, for illustration sake, that any other large
stockholder should sell out his stock; suppose a Canal
Company, for instance, or any other wealthy a«soci«
! ion, chose to part with their Mock in this Bank, he
cause they deemed it most for their interest to u”>e the
money elsewhere, would such a sale affi cl the. credit of
•bo stock? T'fot at all. And why must the mere fnc!.
that in the present cace, the seller happened to he the
Government of the United Stale?, produce such an
effect?
Tho Government only censes to ho a holder of stock
— it docs not touch (lie charter of the Bank—all other
operations of the Institution go on as before_oxeep!
that the U. States Government owing a debt, and not
having caM> funds to pay it. chooses to part with smnr
portion of an investment, and change it for another
i it exchanges the advantage of haloing a bank stork
t for that of paying a debt it owes.
! bo long as this present charter continue*, all tin
.ter.iarks feutt-Tcd e- ;•* ccm'irvjtie-c r C}'\[
probable renewal, it is perhaps scarcely proper to
I speak in ltii3 place, at tiiis tun** Vet, I must be
permitted to remaik, that 1 cfltiuut concur with the
I honourable gentleman, from Masa (Mr. Gorham)
I in ui$ opinion, ex proved when tins resolution was
:ii;induced a few days since, that the stockholders iu a
Lank of the United States Lave a right to expect the
, renewal of its charter. They, like others, may indeed j
calculate the probabilities of such an event, but. in the j
mean while, they have a precise period fixed by the 1
charter for its termination, and on that alone lhey"have
3 rfcht to reckon. For myself, if i were to speculate !
00 the probabilities of the renewal oT the present '
charter of the United States’ Bank, i should, 2 confess,j
sjy it was highly probable it will be renewed. It is ;
tree, 1 did not vote for (lie charter, and personally. ,
1 should vole against its renewal; but, on oilier 1
grounds from those on winch l should act, the subject
assumes a very differed! aspect. The* old hank wasin* j
deed suffered to expire: hut in a very few years, public
opinion called decidedly for its renewal; and if we
may conjeHure the future from knowing * nd remem
bering ibe past, it appears probable that (lie same
views which resulted in'he piesent chatter, will prevail
for its renewal. Tho prominent considerations urged
by gentlemen in i'n favor, were, so fir as I recollect,
the cfi'ccl of the Bank in equalizing exchanges; in
beeping up a currency at par value; in liansferring i
with facility, balauc*'6 from one part of the United
Slates to another, and in its furnishing n safe deposi
tors for toe foods of the government. Trove- reasons ■
will probably bo as operative in u;Jj, as they were
when tho charter was granted.
A farther cnjoctroti to the proposition I have sub
milted *v«j toe consideration that i; would bo wrong j
• r* if.'cli. and in 1 no eyes of the American People, that .
Goverumcr.t Si.onld continue its control ever an iu—!
&i*tutn;n .wkicu, .0 that case, would be private proper** |
tv. Aud eeriaioiy, were it (cue Hint tie* Bank ef the :
i-.vded States, as coon as the Government should j
s..! cut its '-!•}•.»£ tueioiii, would become merely pri- ;
riu propeny. there would be much strength in this |
• ;on. Let, will it not bo remembered (hat toe!
I* *;'*. i of lids bank comes to a vast extent, instead of!
.;.s> ■'•oviot'ts oiioulrtting medium of the country? That
' j yupei displacesspecie, and transfers if to the vaults
-d ibo * anti: \\ ii:!e this in the ease, can it bo said
i;-iv too country h..^ in* interest id that bank, and I
v, ;jivc u.i concern with n.c t be whole binds ol
<o< . Slates are these deposited: can it be possible
Ui.it tbe GnvormncQt has no concern in a bank that
koi.-I.s i’s whole moneyed capital? What iUhe Gov- i
eioir.cnl does * cil vul b* stool', has it not still live Di .
rectors out oi twenty live, why manage its concerns.' I
.uni ought it net to have them? it has the privilege ol
Knowing and examining ;be slate of (be bank’s affairs. j
is uot Ibis just and right? seeing that all its funds are j
deposited tbere? Sup-pose the l>2r:k should, from any
pressure o* circumstances, be induced to violate its
charter; the case is provided against: but how? l3tho i
violation to he judged of here, or in the other branch j
of the Legislature? Mo. it is io be declared by (he l
J.tdii iary: it is there (hat the facts are lobe judged,'
audx the declaration made It is not. then, a true pro
pi llion, that the Gov crement will i clniu its cuulrou!
over a mere privutehu-uiulion.
i he^e coiuideialiens, however, are urged merely as
:: collateral and auxiliary part of tiie subject. i\i v gieat i
and tnniu argument has respect to the pc» urria—;
> \ advantage to be gained by the measure l propust*.
iiul there are other vn-ww of -.(. I have already said
on a .’uirnor occasion, that, in my judgment, it is not
proper that Go/eiriincnl should he a stockholder in
U.e bank, and that, by (be very fact of being so, it ss
exposed to the i;uioonce of interested rnutl>es Let
«*'«<•» for a moment, illustrate tlvis position. By the
rrt3c.it charter oi the bank, the interest leoetvabio
by tiie institution is limited to tr per cunt. W !
L-.:k into fu’urity, I can suppo-e tJ-.at a proper ition
be made to Gongroxs to increase this rate of hi— .
lere-l; and can it not well be imagined, that men of
• ho puicst integrity, then in ?h;s [louse, mav, insen— '
sihiy, and without their own knowledge, be, (0 a grer.- :
ter or less degree, influenced hr a calculation on ike •
receipt of tins interest.’ Gsl me suppose another case, i
end such p.-i one a? has actually Happened elsewhere. !
It is admitted. thsi paper, in order to constitute a !
aouiid currcucy, should at ail times be convertible mto 1
specie. Now suppose a stole of great public difficulty, I
au l, m this emergency the batik steps foiwr.nl to tiie I
relief of the Govei nment, might not Gov«r,nreiit, in ,
such a case, be induced, by a regard to it® ntu . .tei
c=>t, to pas* an act suspending specie pavinen: ?
Goring llu; h;;t war, tbeie were baiK:-i in this coun
try v. iio tvei e compelled, by the pressure of the times,
t" ruspend their own specie, payments, and what was
the consequence? fncli an cnormoiis and oveiwlielm*
mg issue of paper was pinned out uu the cwnununUy.
that the value ol a’d kinds of property was deranged. ’
and consequences of tbs most distressing and luiuous
character r.coeixai i’y ensufd. 'i ho then Secretary ul
the Trea&uiy estimated, 1 think, the total amount ol
; the circulating medium, at one t:mc, at the enormous •
i sum of ooe hundred sini fifteen miJIiona of dollars, and
this vast arimunt was, in llic course of four years, rcriu
• cod down to forty live millions.; the contracts and epecu
• lations'of the former years were .- wept away by the rcli
ling ebb. tir.d thousands and tens of thousands were
j brought to utter ruin by the charge.
t\ irmarKaoIe inMar.co of lno same lurid linpppnrd
in England. In the vear 1707, Parliament authorised
Ibo Dank of England to suspend specie payments—
they were induced to adopt this measure, because
tiie Gevernme »« needed the funds of the Dank to sr.b
j sidi/.e their Continental /lines in the great struggle
1 which then convulsed Europe. Dot while the Dank
was compelled to pay snecie for its notes, this could
not he accomplished. The act was then passed. Dm
j no sooner was the bank releaeed fiom the necessity of
! paying in gold and silver, than its paper suffered a de
preciation of from 15 to fJ0, and, I am ci n told hy a
i gentleman near me. (and who is more versed in these
matters than I pretend to he) to 331 per cent. 1 men
: linn these matte:s as having only a collateral hearing
on the subject—hut they tend to show the danger of
i placing the Government under temptation to a mea
sure thus fraught with evil Jam therefore fixed in
the opinion that the Government ought not to con
linue to lx; a Stockholder in this Dank; hut 1 think 1
! have shown that the People would I eve r.o just reason
, to complain that Government should, nolvfitlis'nnding,
! retain it* present measure of copiro! over the institution.
'>' lus. however, is a subordinate consider?lion. i\Iy
main argument rests, as i before observed, on the pc—
j cuninry advantage to be realized bv the sale of the
j Stock. No member on this floor calculates, I p.rc~
' sumo. to impede the operation of the funking Fund;
vet that fund will throw inio the Stock market seven
'millions of money the next year. ;,nd this will produce
j more injury than throwing into market the same a
i mount of Dank Stock. Dul, while the redemption of
the debt will threw so large a sum afloat, the safe r
the Dank Stock owned by the LruteJ Staten will im cr
and absorb it.
; Buch arc tho general views f-v which 1 hare been
influenced to offer the prevmr resolution. I am well
aware Mint a difference of sentiment exists npon this
I subject, among gentlemen for whose talents I have the
highest respect. They will no doubt bring forward
: their views and support them with their sreiwtomed j»
j bility. I slial! hear them wiih the deepest attention;
I and now : '■g le^.vc to conclude, hy ex pressing a hope
J tn?‘ the House will p.r«sc,r) ibis measure, in its present
ij stage as dccfmirr it* "*re*r.nt *t*ctefcn, IncT.-rt to be
1 — ■■ — h—i vir vxiiiuc. u*.var o! * • -tni i r- • «. v* cr .i/tx
Mr. BARNEY next rose. He said, that, emulation
1 the example of the gentleman from Vugiuia, he would
take occasion, at the threshold of this discussion, to dis#
claim die influence of all party couvideintim * The
onlj bannnr he was prepared to roll} under, was
of his c;oun*ry, whose best interests ho considered dccp»
Iv involved in Hied* c is ion that shall bo hud on this im
portant question—the agitation ot which liad already
created a strong sensation, much increased by the higll
reputation of the tiunoiable mover, who, distinguished
as a politician, occupied a large space m public esteerrj
and the ingenious, eloquent, and imposing argument Lo
had just addressed to lha House could not tod to in
crease its eti'ect. When it is tecoliccted that tho re
solution now uiuier consideration affects an lns'itutiou,
whose cap.lal of ihii ty five (iiilliuus of dollars is used as
a circulating medium among the respective .States, and
between these U. State-, and foreign countries, it can
not create surprise that an universal panic should per
vade our commercial cities: for, until this question is
decided. United Slates’ Bank St«ick is valueless as a
means of remittance, mote especially to Great Eritam,
where, as exchange fluctuates, large put tines of it aru
fi.quently transferred. The argument, based on li'.ti
supposed profit to be realised by tins sale, will be found
to ieeetnble statues of marble resting cu pedestals o£
ice—the moment it is ascertained that the Gores n incut
has dissolved its connexion with this National Institu
tion, by the transfer oi its stock, it is perfectly knmaitr
riai what amount of capital may beset afloat bv the ex
tinction of the public debt—that confidence which we
shall have withdrawn from it, will pervade nil money
'ojjdcirs, ruid, before aside of one share can bo effected,
'•he mailtet price will fail to par. The honorable mover
of this resolution frankly avows, that he was oiiginally
opposed to the chat ter and that he still continues hestbo
to its renewal; .fin# propositiou is adopted, will it not be
fairly inferred, that the policy which dictated tue sale of
tire stock, j-. to he maintained by a refusal to renew the
Charier, and consequentiy, the value which the .*?tcclC
in :iio market derived from an impression that the Go
vernment. having an interest in its prosperity, will to
favorable ton prolongation of its existence, ceases ti.o
rnoiTvnt that tale is decided on. Ji is assorted that, at
the present soiling price, of htoeks, money really pro
duces but 3.’, ptrcenl. per annum; admit this position,
and (lien lh» U. Stains’ Bank Slock, producing (3 p2r
cent, on i s cost of $100, ought not to bo sold under
1 Id' f;c*i share .Mr. BY fir; cessions were, ll.at as it ip
desirable to pay o!F. forth wiio, the Ioanns paying 6 per
cent. in'erest, the rtmcun; consequently, caivreadi'y ha
obtained at -F per cent. As the lined; divides 0' per
cent., a sale of its Stuck under $133 i per share would
bo so much lost in it* real value. :Vli. ii. here asked
If tl.<* exigencies of d.e o. Lon required any exlraordi
nary etrnri to pay cfT the National debt, the amount of
which was nominal!; G7 millions, in reality but -Vtf
For this identical 7 millions of Bank Stock, which we
hold in exchange for 7 millions f> per cents, issued to
the Bank, is a set off against that portion of the debt.
And 13 millions 3 per cents, (which under tio circuirr*
fct-Dce3. was i! probable the Government would pay
otr while a single ir.teri.al Improvement remained un
executed, or any Taxes were levied upon the People,)
there remains, hut -17 millions lu hti discharged, which,
by Che regular opeietioo of ll.osinking fund, would the
extinguished in less than 7 years-; and it is not desira
ble to the creditors of the Nation, or to the Nation
itself, that it should fee paid off more rapid';.
Mr. 13. could nut coincide in the opinion, that con
tinuing to hold this slock could have any influence m
h creasing the r.Ua of interest bv legislative enactment?
As individual*, a largo portion of tlie members tx;mpv
sir.g tlio Congress of the u nited Slates had occasion In
become borrowers of money, Lenny they cuutd have t; t
indticeineid to raise the rule of interest; us politic:; i.*,
they ecuw! net be so short sighted as no! to f'or.rsei,
that, in .i f'ov^nio.ent cons.Yo'ed like ours, ihc c'.j—
itiuul the nation. 1 debt was extinguished, the duty cn
imports, v. Inch constifnfed :ha revenue of the
country. would be so much reduced as merely to meet
the current expenses of the nation, consequently the.
slightest Speck of was in the political horizon ivoull
require increased expenditures, u hir 'd could only ba
met by temporary loans, when we niu*»t again become
payi’rs of ifiterc.t, tin* nicrense of which would react
on oniselves Me tnu-l Cw.ifess this argument had Go
weight will. him.
Mr. B. reinaiT.t.ri, liiat it might not be de?im- i irrrievst
i.i irciir to the fioaiifi.i! Yiliuttion of the emintiyat the lime
iliin 1 i.''iluiian v. as called into existente. An irreileemahle
paper coireiifiy ft- r.d.-d the Union, circulating within a few
n.lies nr.iy r.f ihc ti.u i. whicli i$>;ied ii.m rl va’ueisss for any
purpos- of i xi.lnmpe beyond tiis limits of the iSiate which,
cttiiiioiized if. If liiv! Tien j'i, leijuiretl any portion of tfcft
revenues collected snath ol too Dein wart- to meet its px
; emtiime? in the F ;stern Stales they had !•* encounter «>.
premium ..! ho i.!y per runt, whirl:, at one period, was tiip
artital ran: ol > x. 1 ar Fo l.i -tween t>.t!;in...ie oral Boston.
Whnt ai • thelxMi.if7ei.tl changes which I.ave heeii piotiu*
ceil hy the esinoiishuierit of this great nati mat liistittUioni’
You. nilicio e, no i"!.;-;i i iainied with Mivpieion, circulate:.
!ieviy throughout I1...-' w. ie . \tft,.!cd empin ; a sueriu fnu.s
ttguialea this prn^iiiiriil fe.ila c of rorninneioI iiileicotirje,
and nil balance? of public a...; private funds era trims fil
led fioin Flotilla to Maine, without expense or li.slt. On?*
tudiion five licn.lrrf! ! bo visa ml dojl.irs has been received
into the pr.Mic Treasury ns a bon s for a charter. As
least one million will be gained by the difference beuveeu
fie dividend-: on bank slock hold t.y the United but Its au3
the f, ep.r cent stock issued to the hank.
Should the averagu riivir.ends lie vx per ret.t, per anr.xm
for the term of its charter, it will amount to one million
/'our hundred thousand dollars; hut Coin hundred thousand
is deducted as a large allowance for rontiugei ics. The
saving of salaries and expenses of twenty-four Loan Offices
in t'-.c respective States, w hose* duties are now gratuitously
discharged by the bank, will j in twenty years, amount to ;t
little short of another million, thus exhibiting the enormous
sum of three millions and a half of dollars, clear gain to tho
Union, during the continuation of the present charter.
D:k»s not the goose lay gulden eggs fast enough, that tit err.'
thus invoked to do a deed, which, if it uhail tint jeopard i:vc
existence, must, by infusing doubts and i.iistitut ah ea.l
and at home, materially ciicuu.scribe ttiu sphere of her.
usefulness.
Mr. }J. concluded,by remarking, that he considered ti.Vs
institution as entitled to the fostering care nod paternal
protection r.f the constituted author ides if the nntion.
E'rnnre, England, and other eonirneriial countiies had
fooo.l it indispensable to cherish ft: ::i protect a system
which fixed the circulating mitdium on a firm basis, and,
although we should t uMi realize the profit of sixteen hr.i
dred thousand dollars, which was the inrliirement held out
by lite caiciijfttiotts of the honorable member, lie would
esteem it a light equivalent for tho loss r.f national repu
tation v-e should sustain by presenting ourselves to this
World as a Coirgies? of stock-jobbers, anxious to avail
otirre'vcs of any rixo in thr shares of nor Is ation.il Bank,
I which the dictates of sound policy had called into exit,
tooec, sir! which, in his judgment, ought to be perpetuated.
Aware of the importance of an early deci-mn of this inn.
meiiio'is question, Mr. It. said be would forbear in', nriirtjf
• any further remarks on the attf-ntioa of the H >u«».
Mr. BARBOUR, with a view t. obtain a dnret deci-.e.,
i.r.ini <uc piinriple invoived, novz modified his resolution tA>
as to instruct the Committee of Ways and Means to repn.t
a bill to authorize the sale of the Stock of the Bank owned
by the United States.
[ Mr Mr DUE FIE, Thai man of t’. a Com ini lire of Wt •, <»
and Means,cxpies^trl his‘hanks to the gent’eman from Vn.
for bis fairness, in proposing tins modification, lie tlrotici.*,
with tbe gentleman who had preceded him, 'bat was im
portant the question should be decid ’d on its merits, a .d
all important that it should bo decided r- <t'.nn as po*«tb’ti.
\ lie thought that, in a fiscal vietv of the rjinstinh, (fie gm,
1 rteinan from \ irgrnia, in Ittyirc down I,is premises, h'»d
{overlooked the well established principle, that,even in in
t’ V,ki' : ‘kar '.-{